About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, March 31st, 10:10PM
rss
Investment News

Ethical investing: Govt may boost SRI funds

The Green Party's demands to have part of the Government's superfund invested ethically are likely to be a significant boon to socially responsible investing.

Thursday, April 26th 2001, 1:40PM

by Philip Macalister

The Green Party's demands to have part of the Government's superfund invested ethically are likely to be a significant boon to socially responsible investing.

A report done by Australian based fund manager Rothschild Asset Management says that ethical investing is growing in popularity across the Tasman, but it is unlikely to be as popular as it is in the United States.

"We are unlikely to see the same extensive embracement of the concept as we have seen in North America."

It says that investors are becoming more comfortable with the concept that "ethically investing is profitable."

One of the triggers which is likely to see ethical funds become more mainstream is big name managers rolling out product.

"The catalyst is likely to come from key, brand name fund managers demonstrating that such funds are not fringe dwellers in the market place, but robust investment products that can match the performance and wealth creation ability of the traditional products."

In New Zealand three of the big managers, Tower, AMP and Guardian Trust have rolled out ethical funds and more are likely to follow.

This is where the Government's super fund may provide a significant boost. If part of the fund is invested ethically, as demanded by the Greens, the profile and performance of these types of funds will become mainstream.

The two reasons being that the fund's performance will undoubtedly be subject to intense scrutiny, and it will be big in dollar terms.

Colonial First State's parent company Commonwealth Group have shown interest in this area by making submissions to the Finance and Expenditure Select Committee about how certain types of socially responsible investment practices might be used by the fund.

Another player expressing interest in this area is Challenger. It is also looking at rolling out an ethical fund in New Zealand.

Rothschild's says that in the retail sector the demand for ethical funds is coming from the investor as opposed to the adviser.

It says that more than three quarters of the people in a recent Resnik-KPMG survey wanted to know what there superannuation money is invested in, and an even higher majority said they would be concerned if their super was invested in companies with ethical issues, such as the use of child labour.

The research also shows that about half of the people surveyed were willing to allocate 22% of their investments to a socially responsible fund and virtually all said they would be happy to allocate 12% of their portfolio.

To get an idea of how the gatekeepers, that is advisers felt about ethical funds, Rothschild surveyed 2000 planners earlier this year.

In the retail sector its research showed there wasn't a strong preference to ethical Australian shares over international shares. Rather 89% of the people said they would want to choose both an Australian and/or an international share fund.

The research says that both the retail and institutional investors prefer a combination of positive and negative screening. (For details of the difference between the two click here).

In total 43% of respondents went for a combination approach, while 23% each picked positive and negative screens.

The survey also asked people what were the most important factors to screen for.

Rothschild says the respondents were clear on what areas they felt were important to screen.

Top of the list for retail investors was environment, followed by human rights, tobacco, gambling then alcohol and labour relations. Institutional investors ranked segments in a similar way except tobacco was much lower down the list.

To download an investment statement for Tower's ethical funds click on any of the following links:

- FreedomPlan Global Responsibility Fund (super fund)
- Global Responsibility Fund GIF

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« Nervous time for investorsKing builds an empire »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is bought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

Edison Investment Research
  • Brunner Investment Trust
    27 March 2015
    43 years of consecutive annual dividend growth
    The Brunner Investment Trust (BUT) blends UK and international equities to provide what it describes as a ‘one stop’ investment solution for...
  • BlackRock Latin American IT
    26 March 2015
    Long-established, diversified regional specialist
    The BlackRock Latin American Investment Trust (BRLA) invests in Latin American equities, aiming to provide attractive total returns over time from a diversified...
  • Deutsche Beteiligungs
    25 March 2015
    Increased rate of new investment in FY15
    Deutsche Beteiligungs (DBAG) has made a positive start to FY15, reporting a 5.0% increase in NAV in the first quarter and committing a total of €55.9m...
  • Fidelity China Special Situations
    20 March 2015
    Accessing China’s long-term growth potential
    Fidelity China Special Situations (FCSS) is a specialist, actively managed closed-ended fund that invests in Chinese and other related equities to provide...
  • Strategic Equity Capital
    20 March 2015
    Selective investment in UK small-cap growth stocks
    Strategic Equity Capital (SEC) is an actively managed closed-ended fund investing in a concentrated portfolio of quoted UK small-cap companies using a...
  • BB Biotech AG
    11 March 2015
    Profit from clinical innovation
    BB Biotech AG (BION) is a Swiss specialist biotech investment company, with a bias towards mid-sized and larger companies generating revenues. The company...
© 2015 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
RaboDirect 4.30  
Based on a $50,000 deposit
More Rates »
Cash PIE Rates

Cash Funds

Institution Rate 33% 39%
ANZ 2.60    2.67    2.79
ASB Bank 3.15    3.29    3.44
BNZ 3.15    3.44    3.60
Direct Broking Call Account 2.80    2.92    3.05
Heartland Bank 4.00    4.28    4.48
Kiwibank 2.40    2.50    2.61
Kiwibank 3.15    3.29    3.44
Nelson Building Society 3.75    3.90    4.08
RaboDirect 3.30    3.44    3.60
SBS Bank 3.25    3.11    3.28
TSB Bank 3.50    3.63    3.80
Westpac 3.15    3.24    3.39
Westpac 0.10    0.10    0.11
Westpac 4.00    4.18    4.37

Term Funds

Institution Rate 33% 39%
ANZ Term Fund - 90 days 3.00    3.08    3.22
ASB Bank Term Fund - 90 days 3.50    3.08    3.22
ASB Bank Term Fund - 6 months 4.10    3.85    4.02
ASB Bank Term Fund - 12 months 4.30    4.18    4.37
ASB Bank Term Fund - 18 months 4.40    4.28    4.48
ASB Bank Term Fund - 2 years 4.50    4.40    4.59
ASB Bank Term Fund - 5 years 4.75    5.25    5.49
ASB Bank Term Fund - 9 months 4.15    4.18    4.37
BNZ Term PIE - 120 days 3.65    3.58    3.75
BNZ Term PIE - 150 days 3.65    3.38    3.53
BNZ Term PIE - 5 years 4.75    5.58    5.83
BNZ Term PIE - 2 years 4.50    4.60    4.81
BNZ Term PIE - 18 months 4.40    4.40    4.59
BNZ Term PIE - 12 months 4.30    4.18    4.37
BNZ Term PIE - 9 months 4.20    3.97    4.14
BNZ Term PIE - 6 months 4.10    3.97    4.14
BNZ Term PIE - 90 days 3.50    3.08    3.22
Co-operative Bank PIE Term Fund - 6 months 4.00    4.11    4.30
Heartland Bank Term Deposit PIE - 12 months 4.60    4.54    4.74
Kiwibank Term Deposit Fund - 90 days 3.30    3.38    3.53
Kiwibank Term Deposit Fund - 6 months 3.75    3.85    4.02
Kiwibank Term Deposit Fund - 12 months 4.10    4.20    4.41
Kiwibank Term Deposit Fund - 150 days 3.60    3.70    3.86
Kiwibank Term Deposit Fund - 120 days 3.30    3.38    3.53
RaboDirect Term Advantage Fund - 12 months 4.35    4.47    4.67
RaboDirect Term Advantage Fund - 6 months 4.10    4.22    4.41
RaboDirect Term Advantage Fund - 90 days 3.55    3.65    3.81
Westpac Term PIE Fund - 150 days 3.50    3.34    3.49
Westpac Term PIE Fund - 120 days 3.50    3.34    3.49
Westpac Term PIE Fund - 18 months 4.50    4.32    4.51
Westpac Term PIE Fund - 12 months 4.20    3.96    4.14
Westpac Term PIE Fund - 6 months 3.75    3.86    4.03
Westpac Term PIE Fund - 9 months 3.80    3.90    4.08
Westpac Term PIE Fund - 90 days 3.00    3.09    3.22
Westpac Term PIE Fund - 2 years 4.75    4.52    4.72
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by PHP Developer and eyelovedesign.com